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Which of the following is a synonym of “Undistributed Profits” ?
Savings of private corporate sector
Reserves and Surplus
Retained Earnings
All of these
- Option 1: Savings of private corporate sector
- This refers to the portion of profits that companies save rather than distribute as dividends. It's similar in concept to undistributed profits.
- Option 2: Reserves and Surplus
- These are funds set aside by a company from its profits for future needs or liabilities. This term encompasses undistributed profits.
- Option 3: Retained Earnings
- This is a direct synonym for undistributed profits. It refers to profits not distributed as dividends but kept in the company for reinvestment.
- Option 4: All of these
- Each term represents the concept of profits remaining in the company rather than being paid out.
The correct answer is: Option 4: All of these
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